Cyprus customs intercept fraudulent imports and counterfeit goods from China

Between June and September 2026, the Cyprus Customs Department successfully dismantled a large-scale fraud operation involving the illegal import and redistribution of counterfeit goods and substandard electronics originating from China. Through coordinated operations, authorities identified newly established economic entities attempting to exploit the EU 'Customs Procedure 42' to avoid Value Added Tax (VAT) payments while moving goods through Greece and Cyprus.

The scheme involved shipping containers from China to Cyprus via Greece to claim a temporary tax suspension before rerouting the cargo to final recipients in Greece or Bulgaria. During these efforts, customs officials seized 13,788 items of counterfeit underwear bearing protected brand names, in addition to a significant volume of non-compliant electronic devices. The investigation revealed widespread under-invoicing of goods, amounting to hundreds of thousands of euros in potential tax losses.

The Customs Department continues to monitor these illicit logistics channels to prevent the internal market from being flooded with hazardous or illegal imports. The investigation into the involved entities remains ongoing as authorities scrutinize their operational methods to ensure compliance with EU trade regulations.